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UAE VAT Update

UAE VAT Update

#Federal #Tax #Authority has clarified certain aspects as to COVID-19 expenses via online virtual workshop conducted for tax agents.
(Press Release Dated 22nd July 2020)
 
The Authority clarified that with regard to the expenses associated with #COVID-19, such as the sterilizing of workplaces and the testing of employees, are considered general expenses.
 
Input VAT is recoverable in the event that the supplies and services made by the business are themselves taxable. In the event that the business is making taxable supplies only, the input tax is fully refundable.
 
However, in the event that the business is making taxable and tax exempt supplies, the input tax will be partially refundable.
 
The FTA also indicated that input tax cannot be recovered on the expenses of testing employees’ families unless the employee bears the cost.
 
Get in touch with our experts to get in depth advisory support on VAT Registration
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